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A Hawkish Pause, But What Comes Next?

Ahead of FOMC day, Head of Research Tom Lee noted that many investors were viewing the market from the lens of a conventional monetary policy cycle, leading them to expect a hard landing and remain leery of stocks until at least three or four rate cuts by the Fed. Instead, Lee has argued that inflation is the key story arc for equities.

FOMC day was preceded by the Bureau of Labor Statistics May CPI release. “The details were better than expected,” Lee wrote on Tuesday, and likely “good eno...

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